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DBS’s Indonesia Prize In Sight

DBS Group Holdings Ltd.’s huge Indonesia deal looks it’s been given the greenlight.

The Singapore lender’s proposed $7.3 billion acquisition of PT Bank Danamon, announced in April, has been stalled since as the bank has anxiously awaited proposed rule changes on foreign ownership of Indonesian banks by regulators.

Now it looks like DBS, one of the highest-rated banks in Asia, could be getting its way, depending on how the new law is interpreted. Announced on Wednesday, the new bank-ownership rules by Indonesia’s central bank stipulate that single ownership of its banks will be capped at 40%, unless the buyer can prove high levels of corporate governance and financial health over three consecutive rating periods within five years of the initial stake purchase.